Jack Dorsey revealed that Square was considering creating a Bitcoin hardware wallet this week. He suggested that “if we do it”, they’ll build it “in the open, from software to hardware design, and in collaboration with the community.” Jack suggested that if they do it, they’ll do it with principals like “bitcoin is for everyone” and “no keys, no cheese.”
What does “no keys, no cheese” mean? In this case, it means Square wants to make the actual “custody” of the Bitcoin as clear as possible. To do this, they’ll be attempting to simplify the process with some sort of “assisted self-custody” system.
They’ll also be attempting to “blend availability and security.” They’ll have to consider that safety failures stem from one of three types of events. As Jack suggested, these are availability failures (“sunken gold”), security failures (“pirated gold”), and discretionary actions (“confiscated gold”).
They’ll likely integrate this hardware wallet with their own Cash App. They’ll likely be creating a custom-built app, but “it doesn’t need to be owned by Square.” Jack suggested that they’re able to “imagine apps that work without Square and maybe also without permission from Apple and Google.” The entire Tweet string makes the case for the wallet – and asks whether it should exist in the first place.
This should prove interesting. Making an app that doesn’t rely on permission from Apple or Google AND works reliably on mobile devices – that’s not easy. That might not even be possible. Would you trust a hardware wallet for your Bitcoin that follows all the guidelines as listed above? Even if it was made by Square?